Wang Yongli: The digital renminbi exposes deep-seated issues and should not be classified as cash or counted in M0
ChainCatcher News: Wang Yongli, General Manager of China International Futures Co., Ltd. and former Vice President of Bank of China, recently wrote that the digital renminbi has gradually exposed some deep-seated problems and challenges during its testing process, making it difficult to achieve the expected results and to clearly define the timeline for its official launch and full operation. Among these, the positioning of the digital renminbi has become a fundamental issue that must be rethought.In the article, Wang Yongli pointed out five major problems with the cash positioning of the digital renminbi, including the potential for data distortion, difficulties in managing the relationship between designated operating institutions and other payment institutions, and significant differences in performance and operation compared to traditional cash. As a result, Wang Yongli believes that it is necessary to quickly adjust the digital renminbi's positioning as cash, restoring its essence as a deposit, and to accelerate the comprehensive promotion and official operation of the digital renminbi through administrative means rather than voluntary methods."This way, not only can it significantly reduce the related costs of cash printing, storage, circulation, and other processes for society as a whole, but it can also enable the central bank to have access to all user information and transaction data of the digital renminbi, thus allowing for comprehensive and full-process monitoring of currency circulation, which is beneficial for improving the accuracy and effectiveness of monetary policy, and enhancing targeted allocation and strict monitoring of misuse through intelligent payment systems," Wang Yongli stated. He suggested that the central bank should organize efforts to deeply study and replan according to the new positioning, quickly come up with an implementation plan, and begin simulation operations. (Source link)
